A captive insurance company owned by a single parent organization is called a

A captive insurance company owned by a single parent organization is called a

• A. Single-owner captive
• B. Association captive
• C. Risk retention group
• D. Non-admitted captive

Answer: (A)

Ownership structure is what this question is testing. A captive insurer is created to insure the risks of its parent company, and when it is owned by a single parent organization, it is called a single-owner captive. This matches the defining pattern: one parent, one captive, designed to insure the parent’s risks and potentially related entities. The other options describe different ownership arrangements or purposes—an association captive is owned by a group of insureds bound together by an association, a risk retention group is owned by its policyholders and tends to focus on liability under a specific federal framework, and a non-admitted captive refers to licensing status rather than who owns it. Thus, the single-owner captive best fits the description.

Ownership structure is what this question is testing. A captive insurer is created to insure the risks of its parent company, and when it is owned by a single parent organization, it is called a single-owner captive. This matches the defining pattern: one parent, one captive, designed to insure the parent’s risks and potentially related entities. The other options describe different ownership arrangements or purposes—an association captive is owned by a group of insureds bound together by an association, a risk retention group is owned by its policyholders and tends to focus on liability under a specific federal framework, and a non-admitted captive refers to licensing status rather than who owns it. Thus, the single-owner captive best fits the description.